THE EFFECT OF LIQUIDITY, ASSET STRUCTURE AND PROFITABILITY ON DEBT POLICIES OF TRADING COMPANIES LISTED ON THE IDX 2016-2019

Authors

  • Wikan Budi Utami STIE AAS Surakarta, Indonesia
  • Suprihati Suprihati

DOI:

https://doi.org/10.29040/ijebar.v5i2.2426

Abstract

This study aims to determine the effect of Liquidity, Asset Structure and Profitability on Debt Policy in trading companies listed on the Indonesia Stock Exchange in 2016-2019. The sample used in this study were 12 trading companies. The sampling method used was done by using purposive sampling. The data in this study are quantitative data. The analytical method used is multiple linear regression models. To test the hypothesis simultaneously and partially, the F test, t test and determination test (R2) were used. The results of this research hypothesis testing indicate that simultaneously the liquidity, asset structure and profitability variables simultaneously influence debt policy. Asset structure and liquidity variables affect debt policy. Meanwhile, partially the profitability variable has no effect on debt policy. The amount of determination test (Adjusted R Square) of 0.523 means that the independent variables (liquidity, asset structure and profitability) can explain the dependent variable (debt policy) by 52.3%, while the remaining 47.7% is explained by other variables outside the research model.

References

Surya, D., & Rahayuningsih, D. A. (2012). Factors affecting the debt policy of non-financial companies listed on the Indonesia Stock Exchange. Journal of Business and Accounting, 14 (3), 213-225.

Agustina, F. (2017). Analysis of the Effect of Profitability, Asset Structure, Company Growth and Institutional Ownership on Debt Policy (Bachelor's thesis, Jakarta: Faculty of Economics and Business UIN Syarif Hidayatullah Jakarta).

Rizka and Mariaty. (2018). "The Influence of Asset Structure, Company Size, and Profitability on Debt Policy in Pulp And Paper Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange". JOM FISIP Vol. 5: Edition II July-December 2018.

Prathiwi, D. I., & Yadnya, I. P. (2017). The effect of free cash flow, asset structure, business risk and profitability on debt policy. E-Journal of Management, 6 (1), 60-86.

Susanti, F. (2014). The Effect of Liquidity, Dividend Policy, Asset Structure, Company Size and Sales Growth on Debt Policy in Manufacturing Companies Listed on the Indonesia Stock Exchange 2010-2013. Accounting journal.

Sheisarvian, R. M. (2015). The Influence of Managerial Ownership, Dividend Policy and Profitability on Debt Policy (Studies on Manufacturing Companies Listed on the IDX for the 2010-2012 Period). Journal of Business Administration, 22 (1).

Cashmere. (2011). Financial Statement Analysis, Raja Grafindo Persada: Jakarta

Munawir. (2007). Financial Statement Analysis. Yogyakarta: Fourth Edition, Liberty.

Downloads

Published

2021-05-28

How to Cite

Utami, W. B., & Suprihati, S. (2021). THE EFFECT OF LIQUIDITY, ASSET STRUCTURE AND PROFITABILITY ON DEBT POLICIES OF TRADING COMPANIES LISTED ON THE IDX 2016-2019. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(2). https://doi.org/10.29040/ijebar.v5i2.2426

Citation Check

Most read articles by the same author(s)

1 2 3 > >>